Gutnick v Indian Farmers Fertiliser Cooperative Ltd

[2016] VSCA 5

Victorian Court of Appeal

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Interrogate

Catchwords

1. Arbitration
2. › International commercial arbitration
3. › Enforcement of foreign arbitral awards
4. › Public policy ground for refusing enforcement
5. › Whether enforcement of award permitting alleged double recovery contrary to public policy
6. › Discretion to enforce where enforcement otherwise contrary to public policy
7. › International Arbitration Act 1974 (Cth), ss 8(2), 8(7)(b)
8. › UNCITRAL Model Law on International Commercial Arbitration, art 36(1)(b)(ii)
1. Equity
2. › Rescission
3. › Rescission of executed contract for sale of shares
4. › Fraudulent misrepresentation
5. › Whether declaration of rescission revests equitable title without express consequential orders
6. › Whether consequential orders necessary to effect restitution
7. › Restitutio in integrum
8. › Alati v Kruger (1955) 94 CLR 216

Quick Take

A declaration of rescission in a foreign arbitral award revests equitable title in property (including shares) without the need for express consequential orders for retransfer, and enforcement of such an award is not contrary to public policy under s 8(7)(b) of the International Arbitration Act 1974 (Cth) merely because it does not include such orders. Once a foreign award is enforced as a judgment of the Court under s 8(2), the Court's equitable jurisdiction and inherent powers are available to prevent any double recovery.